Note on Budget Sheet

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Budget Sheet
Budget Sheet

A budget sheet is the statement of the annual appropriation of the budget, budget release and budget expenditures of operating level offices. It is one of the main documents, which is prepared by all operating level offices to record and report budget release and budget expenditures. It is used for controlling budget expenditures. It is prepared by such offices at the end of each month. It is prepared with the help of journal vouchers and submitted to the central level offices. It has 12 main heads and 47 subheads of expenditures. It is prepared under the prescribed format of AGF No. 8.

Objectives of Budget Sheet

The main objectives of preparing budget sheet are as follows: -

  1. To keep a systematic record of the annual appropriation of the budget, budget release and budget expenditure under different budget heads and subheads.
  2. To provide detailed information regarding annual appropriation of the budget, budget release and budget expenditures.
  3. To maintain effective control on misappropriation of public funds while spending money on different heads of expenditures.
  4. To make the expenditures within the limitations of the budget.
  5. To provide historical data on expenditures and to assist for estimating budget.
  6. To provide financial data and information for preparing financial statements and reports.

Importance of Budget Sheet

Importance of Budget Sheet
Importance of Budget Sheet

Its main importance are as follows:

  1. It provides information about head appropriate of budget release and amount spent on each budget head and the balance remained on each budget head.
  2. It helps to provide information of budget release that how much has been released and how much yet to be released.
  3. It provides instruction to the operating level officer to make expenditures on main heads and sub-heads.
  4. It controls the budget of an office.
  5. It facilitates the preparation of statement of expenditures.

Parts of Budget Sheet

A budget sheet is a budgetary account to be prepared by operating level government offices. It has three parts which are described below:

  1. Annual appropriation part
    It is the first part of abudget allocation on different heads are mentioned. The approved budget amount on different budget heads for the fiscal year is shown in the different column. No journal voucher is necessary to be passed to fill the things in this part. Sometimes, supplementary budget and budget transfer are received from central level office. Thus, it is the first or upper part of the budget sheet.
  2. Budget release part
    It is the second part of the budget sheet which contains the amount of budget release received periodically recorded for each head and sub-heads. The amount of budget release is received out of total annual budget appropriation from the office of treasury and comptroller. The amount received as the initial revolving fund and additional revolving fund is also included in this part. The office of treasury and comptroller release the budget either on monthly or four monthly bases. At the end of each fiscal year, this part should close by depositing the surplus onto freeze account or consolidated fund account. The surplus budget on each head of expenditure is mentioned within bracket in the column of concerned heads.
  3. Budget expenditure part
    It is the third part of the budget sheet where all budget expenditure are recorded into different heads and subheads for the period. It also recorded the expenditure incurred through petty cash fund. It should not record those transaction which are not related with budget head subheads. Advance payment is also recorded. When the advance is given to a certain person for some purpose, it is recorded in the concerned budget head column and the total column. When the advance is cleared the advance amount is shown within the bracket and actual expenditure is recorded outside the bracket.

Example

The following transactions of District Education Office, Kathmandu are provided to you:

B.H. No.

Budget heads

Annual Appropriation of Budget

Expenditure of Bhadra

21111

Salary

5,00,000

40,000

22612

Travelling Expenses

10,000

1,000

22142

Communication charges

15,000

1,500

22311

Office expenses

58,000

2,500

22121

Rental charges

30,000

3,000

22711

Miscellaneous expenses

11,000

4,000

29311

Furniture

1,50,000

18,000

Total

7,74,000

70,000

Aswin 1 Received a bank order and release order for the actual expenditure of the last month Rs. 70,000.

Aswin 3 Issued a cheque Rs. 1,500 to Section Officer, Mr. Nimesh as an advance for a tour.

Aswin 3 Paid Rs. 1,400 Gorkhapatra Publication for publication of a notice.

Aswin 16 Mr. Nimesh submitted the bill of travelling expenses of Rs. 1,500 and his advance was cleared.

Aswin 29 Issued a cheque of Rs.41,000 for the distribution of salary after deduction of Rs.10,000 for provident fund, Rs. 3,000 for provident fund loan and Rs.1,000 for income tax.

Required: Budget Sheet

Solution:

Number and Heads of Appropriation

Consumption Expenditure

Office Operation Expenditure

Capital Expenditure

Appropriate Budget Heads/subheads

Salary

Allowance

Uniform

Water and Electricity Charges

Communication Charges

Office Expenses

Vehicles

Machinery and Equipment

1.01

1.02

1.03

2.01

2.02

2.03

6.02

6.03

Appropriation of the fiscal year

138900

5,00,000

30,000

90,000

40,000

45,000

24,000

5,80,000

80,000

Budget transfer

Date

Ref

Particulars

Total

Release

08-01

Budget release upto Kartik

3,75,000

1,60,000

9,000

40,000

3,000

11,000

8,000

1,20,000

24,000

08-01

Budget release for the month of Marga

2,56,600

41,000

2,000

4,000

1,000

900

700

2,00,000

7000

Expenditure

1

08-05

A

Uniform advance of accountant Rupak Basnet cleared

3,000

-

-

3,000

-

-

-

-

-

(2,500)

(2,500)

2

08-10

B

Petty cash fund reimbursed

250

50

-

-

125

-

75

-

-

3

08-20

C

Vechicle purchased and paid by cheque

1,80,000

-

-

-

-

-

-

1,80,000

-

4

08-29

D

Salary and allowance paid after deduction

34,400

26,400

8,000

-

-

-

-

-

-

Total

2,15,150

26,450

8,000

500

125

-

75

1,80,000

  • A budget sheet is the statement of the annual appropriation of budget, budget release and budget expenditures of operating level offices.
  • A budget sheet is a very important statement for operating level government offices which is used for controlling budget expenditures.
  • A budget sheet has 12 main heads and 47 subheads of expenditures.
  • A budget sheet is prepared under the prescribed format of AGF No. 8.
.

Very Short Questions

The main objectives of preparing budget sheet are as follows: -

  1. To keep systematic record of the annual appropriation of budget, budget release and budget expenditure under different budget heads and subheads.
  2. To provide detailed information regarding annual appropriation of budget, budget release and budget expenditures.
  3. To maintain effective control on misappropriation of public funds while spending money on different heads of expenditures.
  4. To make the expenditures within the limitations of the budget.
  5. To provide historical data on expenditures and to assist for estimating budget.
  6. To provide financial data and information for preparing financial statements and reports.

A budget sheet is a very important statement for operating level government offices which is used for controlling budget expenditures. Its main importances are as follows:

  1. It provides information about annual appropriation, budget release and budget expenditure under different budget heads.
  2. It helps to maintain effective control over the budget.
  3. It facilitates the preparation of financial statement of reports.
  4. It also supports for the preparation of the budget and run the financial administration.
  5. It facilitates for an audit of books of account.

A budget sheet is a budgetary account to be prepared by operating level government offices. It has three parts which are described below:

  1. Annual appropriation part
    It is the first part of a budget sheet which is placed at the top of the sheet. It shows the total amount allocated under different budget heads & subheads which are approved for the fiscal year. This part is filled up with the help of approval letter provided by the central level office. It determines the maximum limit of budget to be sent by the operating level offices. It shows the inter heads transfer of budget. Journal voucher is not necessary to fill this part.
  2. Budget release part
    It is the second part of the budget sheet which lies just below the annual budget appropriation. It is made out of annual appropriation. It shows the total amount of budget release received from the central level office. It shows the amount of budget release in each head & subheads of budget expenditures. It is prepared on the basis of journal voucher.
  3. Budget expenditure part
    It is the third part of the budget sheet. It shows the budget expenditures made by offices under different budget heads & subheads. The transactions, which do not affect the budget heads, are not required to post in this section. It also keeps the record of advance given & cleared transactions. The petty cash expenses are recorded at the time of reimbursement. It is prepared on the basis of journal voucher.

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  • A ______ is the statement of the annual appropriation of budget, budget release and budget expenditures of operating level offices.

    bank cash book
    petty cash book
    journal voucher
    budget sheet
  • Budget sheet is prepared by operating level offices at the end of ______.

    each month
    each week
    each two months
    each year
  • Budget sheet has ______ main heads of expenditures.

    12
    47
    8
    18
  • Budget sheet has ______ subheads of expenditures.

    18
    47
    12
    8
  • Budget sheet is prepared under the prescribed format of AGF No. ______.

    8
    19
    10
    9
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ram

very short questions


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suman@1

what is budget transfer?


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